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is looking like hurricane katrina in one key respect and that is the price tag. steve liesman joins us now with more. billions and billions more. >> yeah. becky, the cost of sandy keeps rise and while it has not risen to the price tag of katrina, as the rubble is removed and the costs are tallied, the two storms are looking similar in the tale of devastation they tell. aid will arrive on a city focused on cutting spending. federal emergency money is subject to automatic cuts if we get over the cliff. this is the latest data putting at $70 billion to $90 billion. yesterday governor cuomo came out with this number. we know that includes what mayor bloomberg said was 19 billion. add that to what governor christie said of 29 billion. >> 360 million? >> for connecticut. >> and yesterday a company that we've been following since the beginning practically doubled their estimates of insured losses. originally 7 to 15. now 16 to 22. what i cannot tell you folks is whether or not the insured losses are included in the new york and new jersey governor statements. it could be 70 billion. governor cuom
than triple what hurricane irene cost. but still far plea record costs of hurricane katrina several years ago. governor christy hie has pledgeo rebuild the shore but that would come at an even greater cost. and where he withstand, we have to tell you as we were driving in, there are actually school buses blocking the flooded roads. you can imagine with no school in session and very thin police availability given everything that's going on, all the emergency situations, they're use aing school buses to deter cars from going down dangerous roads.aing school buses to dete cars from going down dangerous school buses to deters from going down dangerous roads. this boat was across the street and police have propped it up to get it out of the way so that emergency vehicles can keep going. of course that's the only way that you can get on the island here. back to you. >> have there been other people that you've seen out on the streets or is it pretty deserted aside from the emergency personnel? >> reporter: it's actually very deserted. and it's pretty eerie. i've seen all the pict
see on the chart physically is katrina, that bump over there on the left. all the other storms, no pun intended, wash out. here is the katrina effect that bump right there, goes up and comes back down. so hopefully this is not an effect like katrina but if it is in general we'll see if the market looks to it. i was interested in jason trennert's comments earlier that he sees a recession coming and we have to parse that because we can go up to 500,000. i don't buy it but i'd like to talk with jason. jason is a smart guy. >> jobless claims bungy like the fiscal cliff bungy, go back down and then up? >>> let's get to rick santelli who flew out before the storm from new york to chicago. rick, you got the numbers. >> yes, september trade balance of course is a deficit, but it is a smaller deficit. 41.5 billion. this comes from a lower, smaller deficit on the recession from last time august moved from 44.2 to 43.8. 41.5 is the smallest the deficit has been actually for a while. it looks to me you're going back towards december of 2010. claims actually moved lower to 355,000 from an unrevised
does to the economy. >> it does have a big impact, though. because back to katrina for example. that was $75 billion of insured losses. which meant that the economic losses were over $100 billion. so usual talking a very big deal here. companies start to assess how much the business was disrupted. accessibility to their business. the ability of their employees to come to work. you don't start to see contamination issues and environmental issues until later on. but it's unfortunate to say and you asked me a very valid question, it's unfortunate to say that i think this number could be very big. >> the other question is who pays for all of this because the flooding, a lot of this will go to the national flood insurance program. but at some point, who ends up picking up the tab. >> i think mostly the insurance companies, becky. there's three sources of ways to fund catastrophes. you have the national flood insurance program as you mentioned, but that's under fema. fema stands for federal emergency management agency. and that's basically a response mechanism and i think they're doi
want to look at sandy and katrina. because we were lucky, i made this chart before we went on. and turns out the estimate was exactly right. if you have that graphic, i don't know if you have that graphic. let's see if you have that graphic. i'm holding here for five, four, maybe not. what it shows is that there it is, that's katrina in the blue, and that's sandy in the green. you can see the pop there and it's come down. so another week of elevated jobless claims would be normal here. continuing claims too early, that's a week behind to show up here. so we're right in the range of where you would expect to be if sandy was an event along the lines of katrina. next thing is this sentiment number. you had courtney on talking about holiday christmas sales. i want to do a pre-christmas consumer check-up on their finances. i don't know if you remember. maybe you don't, unemployment a year ago, what was the number? >> a year ago we were -- >> like a point higher. >> 9%, .1%. most of the metrics you might care about appear to have moved in the right direction for the consumer going i
behind katrina, 9/11 and hurricane andrew. with the final tally still months away the total costs impacted in how soon the power and transportation grids are back to normal. the sooner they are the lower the final price. as for the firms covering the claims, earnings will take a hit but analysts say the industry is well reserved to cover sandy with over $500 billion in capital the industry has funds to pay, its premium increases over the last year and decline in catastrophe claims helped to bulk up their financial profile. the storm's impact a negative hit to fourth quarter results so after it may help lift profits by getting insurers cover to raise premiums. morgan stanley is expecting to see sandy cut earnings by 26%. deutsche bank expects chub, travelers and allstate to see sandy cut shareholders equity by 2%. aig says it's auto eartoo early say. travelers and chub making no comment on potential losses for now but like all the others, they have adjusters fanned out across the northeast to reach clients. state farm says as of saturday it received more than 63,000 how many owners
command, a m.a.c., something they use in the military when they have disasters like katrina or sandy. they look at disaster preparedness for markets, not talking about setting up a task force for years, go in, look at this, figure out how we can do better in the future because there will be another tragedy. >> people speculated part of the problem may be you need to get the brokerage floors of the partners filled, too, and all of those brokerage floors were affected by the same thing because they were in the same area. is it a situation of needing the brokerage floors or needing a complete backup site in a different state or somewhere further away? rick santelli had talked about this, too. >> archipelago is in the new york area so you don't have something that's hundreds of miles away. that would have helped but the main problem was that people didn't adequately test the system. you remember "field of dreams" if you build it, they'll come. the new york stock exchange built it but they didn't come, in small volumes they came. that needs to change. these are electronic markets. it shou
involved in the aftermath of katrina and some of the storms that hit in '05, and you look back on those experiences and it's very difficult the day before to figure out what to do. and while i think particularly here there was a lot of planning in advance, it's not untypical to avoid thinking about the unthinkable. >> right. >> it's happened in many situations. >> real quick. politically, we keep talking about the politics of the fiscal cliff and all of this, but the politics of energy in this country, do you think that 2020 prediction is ultimately going to be right. do you see the administration now they've been reelected doing the things that you think will actually get us there? yes, no, where are you? >> i'm skeptical as to whether we'll actually reach that goal. it's possible. unfortunately, we could have been producing a whole lot more oil even before we started opening up the shale areas in the last few years, but we shut down the gulf of mexico after the bp spill. actually had virtually no activity for two years in the gulf of mexico. which cost us a lot of jobs and opportunity
excess capital. >> you remember buffett in '05, you know, after what -- how many storms in '05 katrina. and he said, the next couple of years, nothing's going to happen, and we're going to make so much money -- and nothing did happen. >> it will be sought off. and there's this effect between the insurers and the reinsurers. you'll see also a lot of activity in european and bermuda re-insurance as those insurers have to go out. >> well, eric -- go ahead. >> i had one quick question, totally unrelated, though. it was aig, he participated four years ago now. >> yes. >> can you possibly believe that aig has come back the way it has? >> well, i think i came on the show and said -- i had this analogy, which i guess, you know, we could debate. but i said there were all these gold bricks in the mud of what was then thought of as aig and the insurance companies were the jewels of the empire. and you see now that there is at the bottom so to speak all these operating companies that were really quality, they're coming out, and i think the government ultimately did the right thing by making that p
, a couple weeks ago or three weeks eeg y ago you were talking about sandy being twice the size of katrina but the wind speeds weren't as much and it wasn't going to affect all state. did you see christie and cuomo? are those real numbers? is that what they'd like to see from the feds or is it worse than what you thought on november 1st? itz's worse than what we thought out. it will cost us 1 billion 75 doll lars. it is a significant event. it's significant flooding. that's not typically konked by us but by the government if you buy their policy. unfortunately very few people buy coverage. so unfort flatly there's a bunch of people whose homes got wrecked and that's what cuomo and christie are seeking. our government has a hit of going back to the state and saying, sorry you didn't buy insurance, here's some money and they'll do it again. they're trying to negotiate as to how much they get. >> allstate's ceo tom wilson. we appreciate your time. >> thank you. >>> when we return, we'll have gene ludwig. he will be our special guest. also at the bottom of the hour, we'll talk oil, gold, and m
Search Results 0 to 9 of about 10